During the year,The Light Corporation paid $550,000 in preferred share dividends to ABC Inc.Both companies are Canadian corporations.Which of the following is TRUE?

Name: During the year,The Light Corporation paid $550,000 in preferred share dividends to ABC Inc.Both companies are Canadian corporations.Which of the following is TRUE?
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Question

Quizplus · Accepted Answer

The Light Corporation is subject to Part VI.1 tax because it paid dividends on preferred shares, which are typically subject to this tax under Canadian tax law.

During the Year,The Light Corporation Paid $550,000 in Preferred Share